Hourly 500 Won Shared Bicycle Fee Soars 40%... China Seeking Profitability

The usage fees for shared bicycles, one of the major modes of transportation in China, are set to increase significantly. The industry explains that this is a necessary step to improve profitability, considering replacement demand and maintenance costs.

On the 29th, China’s Pengpai News reported that the usage fees for shared bicycle brands such as HelloBike, Didi Chingju, and Haruo, installed in four major cities including Chengdu, Guangzhou, Wuhan, and Xi'an, have increased by up to 40%.

[Image source=EPA Yonhap News]

After the adjustment, the cost for a 30-minute ride on weekdays rose 40% from the previous 2.5 yuan (approximately 476 KRW) to 3.5 yuan, and the cost for a 1-hour ride on weekends increased 35% from 2.8 yuan to 3.8 yuan. Pengpai News reported that the price adjustment began in early June, starting with Wuhan. In recent years, the shared bicycle market has been dominated by Meituan, HelloBike, Didi Chingju, and Haruo, accounting for more than 95% of the market.

An industry insider explained, "Prices vary slightly by city, influenced by operations and investments," adding, "Each city has different turnover rates, and accordingly, operating costs and market positioning differ, so differentiated pricing strategies are applied."

The price for using shared bicycles was around a minimum of 1.5 yuan for 30 minutes in 2019, but began to rise from 2022. The industry analyzes that this was not only a period when replacement demand occurred but also a time when service upgrades and optimization were necessary.

The market leader, HelloBike, revealed that it reached its break-even point in 2018, with the daily average income per vehicle exceeding 1 yuan. However, it explained that this figure included subsidies and other factors.

An industry representative stated, "The pricing policy for shared bicycles is part of the market economy," and diagnosed, "It is not the same concept as public bicycles from several years ago." They further added, "The industry is exploring new growth points by integrating with various lifestyle services such as charging and errands."

This content was produced with the assistance of AI translation services.